May 2020: Services sector activity tumbles

Activity across the country’s crucial services sector fell drastically in May as the economic effects of the lockdown halted business operations, restricted consumer footfall and led to demand collapse. The IHS Markit India Services Business Activity Index recorded a score of 12.6 in May. Although the figure rose from April’s unprecedented low of 5.4, it remained at a level which, prior to the coronavirus pandemic, was unparalleled in over 14 years of data collection and pointed to an extreme drop in services activity.

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